Wealth managers, nervous about political unrest in the jurisdiction, are being targeted by authorities who are considering fresh incentives, a report says.

Hong Kong authorities are reportedly offering private banks and family offices incentives, possibly including tax cuts, to protect the sector at a time when the Asian centre has been hit by political protests.

The Nikkei Asian Review said organisations such as the Hong Kong Monetary Authority will campaign to highlight existing incentives, such as a recently-changed profits tax regime, and will ask investors about other sweeteners.

Options include more tax breaks, regulatory streamlining and proposals to facilitate cross-border wealth management between Hong Kong and mainland China, especially around the Greater Bay Area, it said. The article did not elaborate on the specific tax incentives that policymakers are considering.

Consultations with family offices and private banks have increased over the past four months as the protests have intensified, the report said.

WealthBriefingAsia recently spoke to law firms and others about the Hong Kong situation, hearing that there hasn’t yet been a large outflow of people or assets but that enquiries about moving assets out of the jurisdiction have risen significantly.

In recent years Hong Kong has not only competed against Singapore – another former UK territory – for financial sector business, but also faces the rising challenge from the mainland’s centres, such as Shanghai.

Hong Kong is also continuing to explore tighter links with nearby financial centres. The Hong Kong Monetary Authority welcomed moves to create a "wealth management connect scheme" linking the mainland, Hong Kong and Macao.